金融英语第三章答案

Chapter 3

Money Market

Exercises

I．Answer the following questions in English．

1．How big is the money market?

Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded．The money market is used by participants as a means for borrowing and lending in the short term，from several days to just under a year．Money market securities consist of negotiable certificates of deposit (CDs)，bankers acceptances，U.S．Treasury bills，commercial paper，municipal notes，federal funds and repurchase agreements(repos)．The money market is a subsection of the fixed income market too．

2．What are the terms of most T—bills?

T-bills are short—term securities that mature in one year or less from their issue date．T—bills are issued with 3 month，6 month，and 1 year maturities．

3．Why would a company issue commercial paper?

Because For many corporations，borrowing short-term money from banks is often a labored and annoying task．Their desire to avoid banks as much as possible has led to the widespread popularity of commercial paper．

4．A money market instrument usually used for import／export payments is known as?

Foreign exchange revenue and spending

5．What does Eurocurrency encompass?

Eurodollars are U.S．dollar—denominated deposits at banks outside of the United States．

6．What is a major advantage of money market instruments?

Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded．7．What are Eurodollars?

Eurodollars are U.S．dollar—denominated deposits at banks outside of the United States．

8．Who can issue commercial paper?

Commercial paper is an unsecured，short-term loan issued by a corporation，typically for financing accounts receivable and inventories．Furthermore，

typically only companies with high credit ratings and credit worthiness issue commercial paper.

II．Fill in the each blank with an appropriate word or expression．

1．One of the main differences___between______the money market and the stock ma rk et is t h at mo s t mon e y ma rk e t—securities—tra de in

a wf u lly h ig h

denominations．

2．The money market is better known__as ______a place for large institutions __and________government to manage their short—term cash needs．3．There are several different instruments___in______the money market，offering different returns____on_______different risks．

4．CDs are generally issued____by__________commercial banks but they can be bought through brokerages．They bear a specific maturity date(from 3 months to 5 ye a rs)，a sp ec if ie d inte rest rat e，a nd c an be is sued

in___an y______denomination，very similar to bonds．

5．The biggest reasons that T—bills are so popular is___because__they are one of the few money market instruments_____that____are affordable to the individual investors．

6．A bankers’acceptance is a short—term credit investment

created__by__a non—financial firm and guaranteed by a bank to make payment．Acceptances are traded ___at________discounts from face value in the secondary market．

Ⅲ．Translate the following sentences into English．

1．货币市场上的金融工具包括短期的、可交易的、流动的、低风险的债券。货币市场工具有时被称作是现金的等同物，或简称现金。

Financial instruments on the money market include short-term trading, liquidity, low-risk bonds. Money market instruments, sometimes referred to as a cash equivalent, or simply cash.

2．国库券是货币市场上所有金融工具中流动性最强的一种。国库券是最简单的借钱形式：政府通过向公众出售债券而筹集到资金，投资者则按低于面值折价购买，在债券到期日债券持有人从政府获得等额于债券面值的回报。

Treasury bills are one of the most liquid financial instruments on currency market . Treasury bills are the easiest form to borrow money : government to raise funds by selling bonds to the public, investors discount purchase according to below par value, maturity bondholders in the bond return in the par value of bonds in equal installments from the government.

3．大额存单或称CD，是银行的定期存款。定期存款的存款者不能因需用资金而随时任意提取存款，银行只在定期存款到期时才付给储户利息与本金。

Certificates of deposit, or CDs, bank time deposits. Time deposits can not